Topgolf Callaway Brands 401(k) match, vesting and fees

Vesting — The portion of the participant’s account attributable to elective pretax and after-tax deferral contributions, as well as rollover contributions, is 100% vested and non-forfeitable. Participants vest in employer-matching and discretionary profit-sharing contributions (if any) at a 50% rate per year over two years of service. If the participant terminates employment as a result of death, total or permanent disability, or reaches the normal retirement age while in service, the participant’s account, as it relates to employer-matching and discretionary profit-sharing contributions, becomes 100% vested even before reaching the completion of the vesting period, as discussed above. Forfeitures — The Company may use employer-matching contributions and employer discretionary profit-sharing contributions forfeited by unvested terminated participants to offset future matching contributions and/or discretionary profit-sharing contributions (if any) and/or reimburse the Plan for administrative expenses. Plan forfeitures totaled $112,234 and $64,502 for the years ended December 31, 2023 and 2022, respectively. During 2023 and 2022, the Company used Plan forfeitures of $50,000 and $20,456, respectively, to offset employer-matching contributions. In addition, Plan forfeitures may be used to pay administrative expenses of the Plan (see “Plan Expenses” below). At December 31, 2023 and 2022, the remaining balance in the forfeitures account was $116,324 and $50,292, respectively.

Notes Receivable from Participants — The Plan allows participants to borrow against their vested balances. Participants may borrow up to the lesser of 50% of their vested account balances or $50,000. Loan repayment periods may not exceed five years with the exception of loans used to acquire a principal residence, for which the repayment period cannot exceed 30 years. Participants are limited to having two loans outstanding at any point in time. The loan interest rate is equal to the prime rate at the time the loan is originated plus 1%. As of December 31, 2023 and 2022, interest rates on outstanding loans ranged from 3.25% to 9.5% with maturities through October 2053 and June 2052 respectively. Participants who are employed by the Company pay principal and interest ratably over the loan term through payroll deductions. Participants who fail to repay their loan balance are considered to be in default and a taxable distribution to the participant is deemed to have been made at the time the Plan administrator deems it distributed, which can occur sometime subsequent to the participants' failure to repay.